-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OJZ2dun7/L2wY93160FIX29yhXyUBDLJdSyBikzWQCB2LorX/PmBgROrGyHIZmea QjqU3l2snXn1dbsejHmMdw== 0000950134-01-503804.txt : 20010703 0000950134-01-503804.hdr.sgml : 20010703 ACCESSION NUMBER: 0000950134-01-503804 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010629 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010702 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAISYTEK INTERNATIONAL CORPORATION /DE/ CENTRAL INDEX KEY: 0000887403 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 752421746 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-25400 FILM NUMBER: 1674084 BUSINESS ADDRESS: STREET 1: 1025 CENTRAL EXPRESSWAY SOUTH STE 200 CITY: ALLEN STATE: TX ZIP: 75013 BUSINESS PHONE: 9728814700 MAIL ADDRESS: STREET 1: 1025 CENTRAL EXPRESSWAY SOUTH STE 200 CITY: ALLEN STATE: TX ZIP: 75013 8-K 1 d88834e8-k.txt FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (date of earliest event reported): June 29, 2001 Daisytek International Corporation (Exact Name of Registrant as Specified in Charter) Delaware 0-25400 75-2421746 --------- --------- --------------- (State or other (Commission (I.R.S. Employer jurisdiction of File Number) Identification No.) incorporation) 1025 Central Expressway South, Suite 200 Allen, Texas 75013 (Address of Principal Executive Offices, including zip code) (972) 881-4700 (Registrant's Telephone Number, including area code) N/A (Former Name or Former Address, if Changed Since Last Report) 2 ITEM 5. OTHER EVENTS On June 29, 2001, Daisytek International Corporation issued a press release filed herewith as Exhibit 99.1, regarding a contract termination. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial statements of business acquired Not applicable (b) Pro forma financial information Not applicable (c) Exhibits 99.1 Press Release dated June 29, 2001. 2 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DAISYTEK INTERNATIONAL CORPORATION By: /s/ JAMES R. POWELL --------------------------------------- James R. Powell President and Chief Executive Officer Dated: July 2, 2001 3 4 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION ------ ----------- 99.1 Press Release dated June 29, 2001
4 EX-99.1 2 d88834ex99-1.txt PRESS RELEASE DATED JUNE 29, 2001 1 Exhibit 99.1 Friday June 29, 1:26 am Eastern Time Press Release Daisytek Redeploys Capital to Higher Return Opportunities Decision to Exit Contract Enables Immediate Strategic Acquisitions ALLEN, Texas--(BUSINESS WIRE)--June 29, 2001--Management at Daisytek International (Nasdaq:DZTK - news), a $1.2 billion wholesale distributor of computer and office supplies and provider of marketing and demand-generation services, announced that its subsidiary, Business Supplies Distributors (BSD), has notified PFSweb, Inc. and IBM of its intent not to renew the master distribution agreements with IBM expiring later this year. Officials said the decision's impact on net income will not be material and, in fact, will provide Daisytek several benefits that are expected to lead to earnings improvements over the next few quarters. Daisytek plans to reinvest the working capital freed by terminating these agreements into strategic business opportunities that are expected to be much more profitable and accretive to earnings for the current fiscal year. "We are in the final stages of negotiating transactions that are expected to deliver revenues to offset those Daisytek will forgo in ending these contracts. New guidance based on this improved financial outlook will be provided within the next few weeks," said Jim Powell, president and CEO. The BSD/IBM contracts were legacy agreements with Daisytek's former subsidiary PFSweb to provide an off-balance sheet financing mechanism to enable PFSweb to service logistics contracts with IBM. Daisytek carries significant debt on its balance sheet related to the master distribution agreements. Upon complete withdrawal from the agreements, debt will be reduced and available cash will be utilized more profitably. "This contract has never provided Daisytek shareholders with a meaningful return on capital," said Powell. "By not renewing these agreements, Daisytek will free up considerable working capital that we intend to redeploy almost immediately into lines of business that will be accretive to earnings and essentially replace these revenues." Transactions being negotiated are designed to support Daisytek's stated intent to pursue strategic acquisitions to support the company's goals such as expansion in office products and growth in profitable international markets. "The non-renewal of BSD's IBM master distribution agreements does not affect Daisytek's ability to source and sell IBM products. Daisytek values its longstanding partnership with IBM and will continue to be a distributor of their products to our reseller customers," Powell said. "This represents one of the final components of our separation from PFSweb and gives us the opportunity to use our financial resources in ways that should enhance shareholder value," Powell said. 2 About Daisytek Daisytek is a leading wholesale distributor of computer and office supplies and professional tape products, in addition to providing marketing and demand generation services. Daisytek sells its products and services in the United States, Canada, Australia, Mexico and South America. Daisytek distributes more than 17,000 nationally known, name-brand computer and office supplies products and over 2,800 professional tape products from numerous manufacturers. Daisytek is headquartered in Allen, Texas. Daisytek is a registered trademark of Daisytek, Incorporated. All rights reserved. This news release and more information about Daisytek are available at www.daisytek.com. This Web site is not part of this release. Daisytek is a registered trademark of Daisytek, Incorporated. All rights reserved. The matters discussed in this news release contain both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. You can identify these statements by the fact that they do not relate strictly to historical or current facts, but rather reflect our current expectations concerning future results and events. Forward-looking statements relating to such matters as our financial condition and operations, including forecasted information, are based on our management's current intent, belief or expectations regarding our industry or us. These forward-looking statements including forecasts are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. In addition, some forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expected or forecasted in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. Certain factors, including but not limited to, general economic conditions, industry trends, the loss of key suppliers or customers, the loss of strategic product shipping relationships, customer demand, product availability, competition (including pricing and availability), risks inherent in acquiring, integrating and operating new businesses, concentrations of credit risk, distribution efficiencies, capacity constraints, technological difficulties, exchange rate fluctuations, and the regulatory and trade environment (both domestic and foreign) could cause our actual results to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. In addition, statements in this press release relating to the expected benefits of the contemplated transaction are subject to risks relating to the timing and successful completion of transitioning certain information technology, integration of the acquired assets into Daisytek's operations, unanticipated expenditures and changing relationships with customers, suppliers and strategic partners. There may be additional risks that we do not currently view as material or that are not presently known. Other factors that could affect Daisytek are set forth in Daisytek's 10-K for the fiscal year ended March 31, 2001. 3 Contact: Daisytek International Jim Powell, 972/881-4700 or Michael A. Burns & Associates Craig McDaniel, 214/521-8596 cellular, 214/616-7186 cmcdaniel@mbapr.com -----END PRIVACY-ENHANCED MESSAGE-----